CFF aiming for best year ever after six-month bonanza
Published:Wednesday | September 24, 2025 | 12:06 AM
Caribbean Flavours and Fragrances Limited, CFF, is on track to deliver its best financial performance in 2025, following robust earnings in the first six months of 2025.
The company, a subsidiary of Derrimon Trading Limited, reported a net profit of $82.03 million for the January-June period — just shy of its full-year earnings of $83.88 million in 2024.
CFF Chief Financial Officer Ian Kelly reported to shareholders at the company’s annual general meeting that revenue for the half-year surged 18 per cent to $529.24 million, up from $447.91 million in the similar period in 2024. This growth was driven by strong second-quarter sales of $302.8 million, reflecting a 16 per cent year-over-year increase. Kelly is also CEO of Derrimon.
Caribbean Flavours’ balance sheet also strengthened, with total assets rising to $966.38 million and shareholders’ equity increasing to $772.66 million. However, working capital pressures are mounting. Receivables jumped 23 per cent to $158.5 million, outpacing revenue growth and indicating longer cash conversion cycles, according to the company’s half-year financials.
Milestone
Despite these challenges, CFF is bullish on its prospects. The company is targeting $1 billion in revenue for the full year, a milestone that would eclipse its previous record of $900.8 million set in 2023. Kelly expressed confidence in achieving the goal, citing strong momentum and a committed team
“If the year is a 100-metre race, we see ourselves accelerating around the 50-metre mark,” the CFO remarked.
“We are saying to you, at six months, if we were to continue on the run rate that we are going at, we will be having one of the best years in the history of the company,” he added.
A key driver of this optimism is CFF’s aggressive export strategy. In the first half of 2025, exports accounted for 11 per cent of revenue, or approximately $58.2 million. That figure rose to 18 per cent in July, and the company expects to maintain that level through to year end. The long-term goal is to derive 30 per cent of revenue from exports by 2027 and 50 per cent by 2030, the company says.
CFF, which supplies flavours and fragrances to manufacturers of food, confectionery, beverage, household and personal care products, is actively expanding into Spanish-speaking markets such as the Dominican Republic and Panama, while deepening relationships in Guyana, Trinidad & Tobago, and the Eastern Caribbean. The company recently sent a team to Guyana to promote new product prototypes and is pursuing partnerships with major regional manufacturers, CFF Chairman Howard Mitchell reported.
Invested heavily
Caribbean Flavours has invested heavily in R&D, particularly in the bakery, savoury, and beverage segments. These efforts have already yielded commercial orders and positive feedback from clients across the Caribbean, CFF said.
However, the company is also grappling with supply chain challenges. Inventory levels remain elevated at $197.9 million — 24 per cent of current assets — as a buffer against global disruptions.
CEO Derrick Cotterell lamented the effects of logistics as he reported to shareholders.
“The logistics to get it here is not always easy, and we had significant challenges last year. We managed to solve most of them, but it would be remiss of me to say that we didn’t have challenges. That would also not help us optimise our numbers,” said Cotterell, who is also chairman of Derrimon Trading.